According to the Coase theorem,whatever the initial distribution of rights,the interested parties can reach a bargain in which everyone is better off and the outcome is efficient.

Question

Quizplus · Accepted Answer

The Coase theorem states that in the absence of transaction costs, any allocation of property rights will lead to an efficient outcome through bargaining and negotiation among the parties involved. This implies that regardless of the initial distribution of rights, individuals can reach a mutually beneficial agreement that results in a socially desirable outcome. Therefore, option A is correct.

According to the Coase Theorem,whatever the Initial Distribution of Rights,the